Is Trending Stock SM Energy Company (SM) a Buy Now?
Werte in diesem Artikel
SM Energy (SM) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this independent oil and gas company have returned -7.4%, compared to the Zacks S&P 500 composite's +2.9% change. During this period, the Zacks Oil and Gas - Exploration and Production - United States industry, which SM Energy falls in, has lost 1.3%. The key question now is: What could be the stock's future direction?Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.SM Energy is expected to post earnings of $1.95 per share for the current quarter, representing a year-over-year change of +25%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.For the current fiscal year, the consensus earnings estimate of $6.77 points to a change of +14.9% from the prior year. Over the last 30 days, this estimate has remained unchanged.For the next fiscal year, the consensus earnings estimate of $7.11 indicates a change of +5% from what SM Energy is expected to report a year ago. Over the past month, the estimate has remained unchanged.Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, SM Energy is rated Zacks Rank #3 (Hold).The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:12 Month EPSProjected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.In the case of SM Energy, the consensus sales estimate of $866.9 million for the current quarter points to a year-over-year change of +42.4%. The $2.73 billion and $3.31 billion estimates for the current and next fiscal years indicate changes of +15.1% and +21.1%, respectively.Last Reported Results and Surprise HistorySM Energy reported revenues of $643.61 million in the last reported quarter, representing a year-over-year change of +0.4%. EPS of $1.62 for the same period compares with $1.73 a year ago.Compared to the Zacks Consensus Estimate of $651.13 million, the reported revenues represent a surprise of -1.15%. The EPS surprise was +6.58%.The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates just once over this period.ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.SM Energy is graded A on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about SM Energy. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SM Energy Company (SM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
Ausgewählte Hebelprodukte auf SM Energy
Mit Knock-outs können spekulative Anleger überproportional an Kursbewegungen partizipieren. Wählen Sie einfach den gewünschten Hebel und wir zeigen Ihnen passende Open-End Produkte auf SM Energy
Der Hebel muss zwischen 2 und 20 liegen
Name | Hebel | KO | Emittent |
---|
Name | Hebel | KO | Emittent |
---|
Quelle: Zacks
Nachrichten zu SM Energy Co
Analysen zu SM Energy Co
Datum | Rating | Analyst | |
---|---|---|---|
01.07.2019 | SM Energy Underweight | Barclays Capital | |
16.01.2019 | SM Energy Overweight | Barclays Capital | |
10.12.2018 | SM Energy Buy | Seaport Global Securities | |
27.09.2018 | SM Energy Sector Outperform | Scotia Howard Weil | |
12.07.2018 | SM Energy Neutral | B. Riley FBR, Inc. |
Datum | Rating | Analyst | |
---|---|---|---|
16.01.2019 | SM Energy Overweight | Barclays Capital | |
10.12.2018 | SM Energy Buy | Seaport Global Securities | |
27.09.2018 | SM Energy Sector Outperform | Scotia Howard Weil | |
23.02.2018 | SM Energy Buy | B. Riley FBR, Inc. | |
06.02.2018 | SM Energy Buy | B. Riley FBR, Inc. |
Datum | Rating | Analyst | |
---|---|---|---|
12.07.2018 | SM Energy Neutral | B. Riley FBR, Inc. | |
21.06.2017 | SM Energy Neutral | Seaport Global Securities | |
13.12.2011 | SM Energy neutral | Robert W. Baird & Co. Incorporated | |
03.11.2006 | Update St. Mary Land & Exploration Co.: Neutral | First Albany | |
09.06.2006 | Update St. Mary Land & Exploration Co.: Neutral | Sun Trust Robinson Humphrey |
Datum | Rating | Analyst | |
---|---|---|---|
01.07.2019 | SM Energy Underweight | Barclays Capital |
Um die Übersicht zu verbessern, haben Sie die Möglichkeit, die Analysen für SM Energy Co nach folgenden Kriterien zu filtern.
Alle: Alle Empfehlungen